The Biden-Harris administration has achieved a significant milestone in its efforts to expand the American offshore wind industry with its latest lease sale. The Department of the Interior announced the results of the Bureau of Ocean Energy Management’s (BOEM) wind energy auction for two lease areas offshore Delaware, Maryland, and Virginia. This sale, the first in the Central Atlantic region in a decade, resulted in nearly $93 million in bids, with the provisional winners being Equinor Wind US LLC and Virginia Electric and Power Co.

A step towards ambitious clean energy goals

The lease sale is a key component of the administration's broader strategy to transition to clean energy. The areas up for lease have the potential to power over 2.2 million homes. This progress is in line with the administration’s ambitious goal of deploying 30 gigawatts of offshore wind energy capacity by 2030 and 15 gigawatts of floating offshore wind energy by 2035.

“At the start of the Administration, our nation had approved zero offshore wind energy projects. Today, we have nine – enough to power nearly 5 million homes,” said Secretary of the Interior Deb Haaland. “Together, we are demonstrating that, in partnership with states, Tribes, ocean users, and industry, we can build an entirely new and sustainable industry that will meet the growing demands of our nation far into the future.”

Highlights of the lease sale

Equinor Wind US LLC secured Lease OCS-A 0557 with a bid of $75,001,001 for 101,443 acres, located approximately 26 nautical miles from Delaware Bay. Virginia Electric and Power Co won Lease OCS-A 0558 with a bid of $17,650,500 for 176,505 acres, situated about 35 nautical miles from the entrance of Chesapeake Bay. Six companies participated in the auction.

Bureau of Ocean Energy Management (BOEM) Director Elizabeth Klein hailed the lease sale as a major step forward. “Today’s lease sale represents a significant milestone in meeting the demand for clean renewable energy along the East Coast,” she said. “BOEM remains committed to responsible offshore wind energy development in the Central Atlantic region.”

Investing in America’s future

The results of this sale underscore the administration's commitment to growing the offshore wind industry and supporting a clean energy economy. The sale generated over $23 million in total bidding credits, which will be allocated to workforce training, domestic supply chain development, and fisheries compensatory mitigation. The leases awarded will not immediately authorize construction but provide the right to submit project plans for review.

White House National Climate Advisor Ali Zaidi emphasized the administration's commitment to advancing the offshore wind industry. “Since Day One, the Biden-Harris administration has turbocharged the offshore wind industry. Today’s lease sale reflects the forward momentum we are seeing to power millions of American homes with clean energy and create good-paying, climate jobs.”

A collaborative approach to development

BOEM will continue to work closely with the Central Atlantic Intergovernmental Renewable Energy Task Force to explore additional areas for future leasing and ensure responsible development. This includes a forthcoming Memorandum of Understanding with the State of Maryland to evaluate new potential wind energy areas.

The American Clean Energy Association (ACP) also issued a statement on the matter in the voice of Anne Reynolds, the association's vice president for offshore wind energy:

“The momentum around offshore wind energy is undeniable. Today’s successful lease sale underscores the critical importance of offshore wind energy in powering America’s future. This industry will bring pollution-free power to the grid to meet growing electricity demand, as well as new construction jobs. We congratulate Equinor and Dominion Energy on their new leases and celebrate this momentum for this pivotal new American energy source. We also commend BOEM for its continued work and dedication to moving this industry forward.  These new projects add to the more than 30 projects in development, including four now under construction. Overall, this buildout of offshore wind energy, when complete, will power more than 21 million American homes.”  

Looking ahead

As the Biden-Harris administration continues to champion the expansion of offshore wind energy, the focus remains on building a sustainable industry that contributes to economic growth, job creation, and environmental protection. The ongoing efforts and successful lease sales highlight a promising future for clean energy in the United States. For more details on the lease areas and bidding requirements, visit BOEM’s website.